INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 2 - Collection by instalments of tax on persons other than companies  

SECTION 221C   DEDUCTIONS BY EMPLOYER FROM SALARY OR WAGES  

221C(1)   [Regulations]  

For the purpose of enabling the collection by instalments from employees of income tax, the regulations may prescribe rates of deductions to be made by employers from payments of salary or wages that employees receive or are entitled to receive in respect of a week or part of a week.

221C(1AA)    

221C(1AB)   [Rates for sec 26AC and assessable retirement amounts]  

Regulations made for the purposes of subsection (1) may prescribe rates of deductions in respect of payments of amounts to which section 26AC applies and amounts that are assessable retirement amounts for the purposes of the definition of ``salary or wages'' in subsection 221A(1) that are different from the rates of deductions that are prescribed in respect of payments of other salary or wages.

221C(1AC)   [Rates for sec 15-3 amounts]  

Regulations made for the purposes of subsection (1) may prescribe rates of deductions in respect of payments of amounts to which section 15-3 of the Income Tax Assessment Act 1997 applies that are different from the rates of deductions that are prescribed in respect of payments of other salary or wages.

221C(1AD)   [Scope of regulations]  

Regulations made for the purposes of subsection (1) may:

(a) prescribe rates of deductions in respect of eligible termination payments that are different from the rates of deductions that are prescribed in respect of payments of other salary or wages; and

(b) prescribe different rates of deductions in respect of different classes of eligible termination payments.

221C(1AE)   [Rates for eligible lump sum payment]  

Regulations made for the purposes of subsection (1) may prescribe rates of deductions in respect of payments of eligible lump sums within the meaning of Subdivision AB of Division 17 of Part III that are different from the rates of deductions that are prescribed in respect of payments of other salary or wages.

221C(1A)   [Deductions from pay]  

Where an employer pays to an employee salary or wages before 1 July 2000, the employer shall, at the time of paying the salary or wages, make a deduction from the salary or wages at such rate (if any) prescribed in accordance with subsection (1) as is applicable.

Penalty: $1,000.

221C(1B)   [Court's power to order payment]  

Where a person (in this subsection referred to as the ``convicted person'' ) is convicted before a court of an offence against subsection (1A) in relation to the refusal or failure of the convicted person or another person to make a deduction from salary or wages in accordance with that subsection, the court may, in addition to imposing a penalty on the convicted person, order the convicted person to pay to the Commissioner an amount not exceeding the amount of the deduction.

221C(2)   [Pay period]  

For the purposes of this section and of the regulations made for the purposes of this section, where an employee receives from an employer salary or wages, he or she shall:

(a) if the salary or wages is or are paid in respect of piece-work performed by the employee, or in respect of services rendered under a contract which is wholly or substantially for the labour of the employee - be deemed to be entitled to receive that salary or those wages in respect of the period of time from the commencement of the performance of the work or services until the completion of the work or services;

(b) if the salary or wages is or are paid in respect of any other service performed or rendered but not in respect of a period of time - be deemed to be entitled to receive that salary or those wages in respect of the period of 52 weeks preceding the date upon which the salary or wages is or are received by him or her; and

(c) if he or she is entitled, or deemed to be entitled, to receive the salary or wages in respect of a period of time in excess of one week - be deemed to be entitled to receive, in respect of each week or part of a week in that period, an amount of that salary or those wages ascertained by dividing the salary or wages by the number of days in the period and multiplying the resultant amount:

(i) in the case of each week - by 7; and

(ii) in the case of a part of a week - by the number of days in the part of a week.

221C(2A)   [Sec 26AC amount, etc deemed to be for a week]  

For the purposes of this section and of the regulations made for the purposes of this section, where an employee receives from an employer salary or wages, being an amount to which section 26AC applies or an amount that is an assessable retirement amount for the purposes of the definition of ``salary or wages'' in subsection 221A(1) , the employee shall be deemed to have received the salary or wages in respect of a week.

221C(2B)   [Sec 15-3 amount deemed to be for a week]  

For the purposes of this section and of the regulations made for the purposes of this section, where an employee receives from an employer salary or wages, being an amount to which section 15-3 of the Income Tax Assessment Act 1997 applies, the employee shall be deemed to have received the salary or wages in respect of a week.

221C(2C)   [Eligible termination payment deemed to be for a week]  

For the purposes of this section and of the regulations made for the purposes of this section, where an employee receives from an employer salary or wages, being an eligible termination payment, the employee shall be deemed to have received the salary or wages in respect of a week.

221C(3)   [More than one payment in week]  

Where salary or wages for, or deemed to be received in respect of, a week or part of a week is or are paid in 2 or more separate sums, all sums so paid shall, for the purpose of computing the amount of the deduction under this section, be aggregated and the employer may, at his option, make the deduction wholly from one sum or in part from each of any 2 or more sums.

221C(4)    

221C(5)    

221C(6)